Making progress on ESG is a joint effort
Private real estate capital has a prominent role in the ESG pact. Indeed, the built environment is responsible for around 30 percent of global carbon emissions – a quite sizable chunk for just one sector. So, the efforts that investors and fund managers are undertaking to bring that number down to net-zero by 2050, in line with the goal set by the Paris Accord, is encouraging. As is the growing acknowledgement of their key role in the creation of thriving towns and cities, and in contributing to the wellbeing of their tenants. Slowly, the dots are being connected between healthy, wealthy communities and building users, and resilient property assets producing value-add returns.
Measuring up on the ‘E’ and ‘S’ components of the ESG equation is a multi-stakeholder responsibility – a real team effort, bigger than any single country, government or business sector – but institutional capital certainly has a driving seat position in delivering long-term positive outcomes for us all.